How the Corporate Director or Governor Benefits from R-pM
Corporate Directors have a responsibility for best business management
Corporate Directors and other business governors need to ensure that a viable business strategy is in place to create planned future value, that capital investments provide itemized returns by creating strategic value, that the business is managed to create strategic value, that accurate financial and non-financial records are kept on the business, and that progress in executing the approved business strategy is maintained.
20th century management prevents corporations and their directors from doing any of this. The actual business is not organized or managed, so most business data is not captured. Strategies are contrived overlays on the business, not actual business strategies. Corporate investments are based on guesses and estimates, not actual business measures. A contrived chart of accounts keeps partial financial records and does not record the actual business. Management information solutions provide enormous quantities of information on contrived structures laid over the business, but only incidental information to manage the actual business.
Result-performance Management (R-pM) organizes the business for 21st Century Management to provide good corporate governance, as explained in the earlier post “Corporate Governance is a Small Part of the Big Corporate Management Problem”.
R-pM provides transparent business organization and management
As a Director, you approve the business and financial results in the economic outputs to be produced by the business. You approve capital investments and financial expenditures needed to provide the capital to produce results. The business of the corporation is the utilization of capital that the Board has approved to create value in results that the Board has approved. The Board needs to govern the utilization of approved capital to produce approved results.
R-pM organizes the business as one integrated business structure to manage the capital invested in the business as performance solutions to produce specific business results. R-pM optimizes the business through transparent management of the performance capacity used for result volumes, performance costs creating result value, performance effectiveness producing result quality, and performance expectations met to reach result goals.
R-pM provides the Strategic Business Structure to develop the future business
20th century management provides many methods to contrive corporate strategies, but no method to define or manage progress to the future strategic business.
R-pM defines the business at a future strategic horizon date. A strategic business structure shows existing and new results to be produced and the expected result value. The business structure also shows existing and new performance solutions to be utilized to produce the results and expected performance costs. The strategy is supported by strategic result goals and performance expectations time period by period leading to the strategic horizon.
R-pM provides direct management of investment returns
The strategic business structure is supported by new investments needed. Each investment is defined as specific new and improved performance solutions needed to improve existing results or to produce new results. Each investment is substantiated by the itemized added value-added to new and improved results over the payback period to provide a return on the investment cost
All investment projects are managed and reported with their own project business structure showing the utilization of assigned resources and approved capital expenditures as project solutions to produce the specific new and improved corporate results and performance solutions as project results.
New corporate performance solutions are implemented to produce new and improved results. Solution development and on-going performance costs are managed to show actual result value-added compared to the projected unimproved value-added over the payback period to substantiate the return.
R-pM provides the means for good corporate governance
R-pM abolishes contrived overlaid organization, process, system, performance management, administration, and other structures that hide the actual business. R-pM eliminates business and information complexity and the high overhead costs of existing structures. R-pM supplements accounting to record the actual business accurately.
R-pM enables good corporate management and governance by managing the actual business, rather than relying on compliance with rules and regulations. R-pM provides professional facility records management to provide accurate and up-to-the-minute financial and non-financial information on the actual business. R-pM manages the strategic business structure by reporting time period by time period for new strategic value estimates and for operation and development progress creating strategic value. Management tactics capital is responsible for evaluating results produced and assessing performance of capital utilized to report to management on the existing and expected future state of the business.
R-pM benefits the Corporate Director or Governor by enabling direct management of strategic value creation
R-pM benefits Corporate Directors and other enterprise governors by providing actual business management and direction and good corporate governance that will never be possible under 20th century management. Sound business strategies can by defined and managed. All operating and development expenditures and costs are reported clearly against the business result produced. All capital investments are transparent and managed through to gaining the planned return, to reduce development risks. Information on the actual business is provided to govern operations and development to create strategic value through good business management. Result symptoms and performance problems are identified and prevented or solved quickly. Business performance is optimized to produce high value-quality results.
Unsolvable 20th century problems such as the unorganized and unmanaged business, intangible assets, unknown performance costs, unknown result value, unknown capital worth, unknown investment benefits, inaccurate records, gigantic IT overheads and complex systems that cannot provide information on the actual business, and on and on all create problems for the Board and prevent good corporate governance.
With R-pM, there is no longer a need to rely on costly obsolete 20th century management. Management can gain control and organize the business for 21st Century Management.
Have your corporate management research R-pM and provide a report to the Board
Ask the management of your corporation to research Result-performance Management and provide a report to the Board on how to organize the business with R-pM for 21st Century Management. Ask them to include a simple list of all the economic output results produced across the business, and a simple list of all the performance solutions utilized to produce results, as a first step to understanding the corporate business. Download information on R-pM yourself to know how to check the lists and the conclusions in their report.
Typical management will resist change and reject R-pM out of hand as unconventional or risky, without showing why 20th century management is superior to R-pM. A capable management team will return with the lists and a strategy to substantially improve the business with R-pM and beat the competition in 21st Century Management.
All the information needed to evaluate and utilize R-pM is provided in the R-pM Toolkit, your 21st Century Management Manual. The R-pM Toolkit is available at a nominal cost at Result-performance-Management.com.
